By Dr. Huud Shittu
Abstract
Interest-free banking has polarized citizenry in Nigeria on the basis of sentiment and ignorance over interest/usury and the policy of the Central Bank of Nigeria (CBN). On this background, this paper examines the challenge of interest-free finance/banking in Nigeria. In achieving this aim, critical/rhetoric method and everyday life theory are employed. This work identifies Ahlu-l-Kitab as a group among the stakeholders, examines their commitments to the non-interest finance and clarifies conceptual study of the interest rate in Old and New Testaments as it relates to Neshekh and Tarbit. What relationship exists between the interest-free finance and Islamic banking system against the ribaNasi’ahand ribafadil? The contemporary challenges such as ethical requirement and steps taken in the quest for Islamic Bank are not only explored but also solved. The goal of this paper is to clarify the incompliance to the financial hypothesis given to the Jews, Christians and Muslims whereas they ought to practice it as taught and the paper concludes that society will be free from financial hardship and exploitations.Hence non-interest bank will be effective and productive more than the modern banks.
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